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Shares of Sirius XM Radio plummeted by nearly 50 percent in mid-day trading Wednesday on rumors that the troubled Internet radio company is preparing to file for bankruptcy. Sirius is best known for offering subscribers commercial-free music, sports, news and talk radio programming, including Major League Baseball, the National Football League, shock jock Howard Stern and popular domestic guru Martha Stewart. However, the high price tags associated with providing that content, combined with a deteriorating balance sheet and the year-long U.S. recession, have hit Sirius hard.
One factor in Sirius XM's slowing growth, which I've yet to hear mentioned, is the downturn in the auto industry. A large portion of satellite radio's past growth had presumably come from Sirius and XM-capable radios preinstalled in new cars.
